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Corporate U.s. Healthiest In Decades Under Obama With Lower Debt

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http://www.bloomberg.com/news/2014-10-02/corporate-u-s-healthiest-in-decades-under-obama-with-lower-debt.html

Steve Wynn, founder of the Wynn Resorts Ltd. (WYNN) casino empire, once called President Barack Obama’s administration “the greatest wet blanket to business and progress and job creation in my lifetime.” Barry Sternlicht, chief executive officer of Starwood Property Trust Inc. (STWD), said Obamacare was driving down wage growth and “affecting spending and the desire to buy houses and everything else.”

They are among a chorus of corporate executives and lobbying groups that regularly assail Obama for policies that they say are stifling investment and hurting companies.

Corporate and economic statistics almost six years into his administration paint a different picture. Companies in the Standard & Poor’s 500 (SPX) Index are the healthiest in decades, with the lowest net debt to earnings ratio in at least 24 years, $3.59 trillion in cash and marketable securities, and record earnings per share. They are headed this year toward the fastest average monthly job creation since 1999, manufacturing is recovering and the U.S. has returned as an engine for global growth. The recovery, which stands in contrast to weak growth in Europe and Asia, has underpinned an almost threefold gain in the Standard & Poor’s 500 Index since March 2009.

It's almost as if there's no recession. $3.59 tr in cash. I wonder how long that cash pile will remain before someone targets it for more productive use....

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http://www.bloomberg.com/news/2014-10-02/corporate-u-s-healthiest-in-decades-under-obama-with-lower-debt.html

It's almost as if there's no recession. $3.59 tr in cash. I wonder how long that cash pile will remain before someone targets it for more productive use....

Funny how they avoid putting a figure on this 'lower debt'.

Still, after 7 years of continued theft, sorry, transfer from consumers, earners and savers, its to be expected.

Only trouble is, its the consumers that need that money, not bill gates.

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I also love how it says 'cash AND marketable securities' as if they are somehow equal.

What, you mean things like shares, that are bid up on cheap money on the margin, which as numerous tech stocks can attest to, evaporate just as suddenly as they appear.

Its starting to look more and more like a typical bloombollocks puff piece. As market commentators who actually bother doing journalism instead of rehashing press releases know, one of the main uses for the feds cheap money has been stock buybacks. Aside from concentrating wealth in fewer hands, this makes EPS appear to go up as earnings are spread over fewer shares...it also makes losses per share greater for the same reason.

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I didn't read the article, but it is almost as if the government nearly doubled their debt in order to bail out the corporations ... no, that can't be right.

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I didn't read the article, but it is almost as if the government nearly doubled their debt in order to bail out the corporations ... no, that can't be right.

It isn't...its worse! Government doubled (or more, if it were counted properly) so corporations could see their debt position stay about the same!

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  • 406 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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